Seohun Oh Surprised by 'House Price Surge', Designates Land Transaction Permission Zones in Apgujeong and Yeouido (Comprehensive)

Seoul City Urban Planning Director to Hold Emergency Briefing at 3:30 PM on the 21st
Earlier, Mayor Oh Stated "Real Estate Disruption Acts Will Not Be Tolerated"

Seoul Mayor Oh Se-hoon Photo by Yonhap News

[Asia Economy Reporter Onyu Lim] Seoul City will designate major redevelopment complexes, where housing prices continue to rise due to expectations of deregulation following Mayor Oh Se-hoon's inauguration, as land transaction permission zones.

The city announced that it will hold a press conference at 3:30 PM on the 21st to provide a briefing related to the designation of land transaction permission zones. It is expected that major redevelopment complexes in Apgujeong-dong and Daechi-dong in Gangnam-gu, and Yeouido-dong in Yeongdeungpo-gu will be newly designated as land transaction permission zones.

Following Mayor Oh's inauguration, prices have surged mainly in these complexes, and measures appear to be taken to stabilize housing prices.

During his candidacy, Mayor Oh stated that he would normalize redevelopment through deregulation such as easing the 35-floor height restriction and increasing floor area ratio. However, as record-high prices continue to be set mainly in redevelopment complexes, concerns have arisen that this could stimulate the overall housing market in Seoul, which had barely stabilized.

In response, on the 16th, during a work report with the Housing and Architecture Headquarters, Mayor Oh emphasized, "We will not tolerate actions that destabilize the real estate market," and instructed to immediately review the designation of land transaction permission zones in areas where housing prices have recently surged, such as Apgujeong-dong in Gangnam-gu.

He also stressed, "Seoul City's housing supply policy, which aims for a long-term downward stabilization of the real estate market, must not make the mistake of causing market instability."

Mayor Oh, who had emphasized rapid housing supply, now appears to be exercising caution amid the rising housing prices.

To enhance the effect of preventing speculative overheating, the city is also expected to extend the designation period for the current land transaction permission zones in Daechi-dong, Cheongdam-dong, and Samseong-dong in Gangnam-gu, as well as Jamsil-dong in Songpa-gu.